Technical Analysis
Rising Wedge
A bearish pattern where price rises within a narrowing wedge — both trendlines slope up but the lower rises faster, signalling weakness.
Key rules
- Both trendlines slope upward; lower rises faster than upper
- Volume contracts as the wedge narrows
- Bearish signal — sells trigger below the lower trendline
- Often preceded by a prior downtrend (continuation) or uptrend top (reversal)
- Target is typically the starting point of the wedge
A rising wedge is a bearish pattern that forms when price moves higher in a narrowing channel. Both the upper and lower trendlines slope upward, but the lower trendline rises at a steeper angle than the upper, causing the channel to converge upward.
Despite the upward movement, this pattern indicates weakening bullish momentum — each successive high is smaller relative to each successive low. When support finally breaks, the decline is typically sharp.
**Context** - As a continuation pattern: forms during a downtrend retracement - As a reversal pattern: forms at the top of an uptrend
**Breakdown** A close below the lower rising trendline confirms the pattern. Volume typically decreases during the wedge formation and spikes on the breakdown.
**Target** The measured move is typically back to the start of the wedge (the widest point on the left side).